Blue Apron reported more revenue than forecast Thursday in its first quarterly earnings release as a public company.
The second-quarter revenue beat initially sent shares higher in premarket trading. But they plunged by as much as 15% as CEO Matt Salzberg said on the earnings call that the company’s new facility in Linden, New Jersey, would be delayed, affecting earnings in the second half of the year.
Blue Apron forecast a net loss of $121 million to $128 million in the second half. It estimated it would earn $380 million $400 million in revenue.
Lower spending on marketing helped the meal-kit delivery service shrink its net loss from the first quarter. Blue Apron is known to advertise on several top podcasts.
The company said it earned $238.1 million in revenue in the second quarter, topping analysts’ forecast for $235.8 million according to Bloomberg. It posted an adjusted EBITDA loss of $23.9 million, or $0.47 a share, less than the expectation for a loss of $24.3 million.
Blue Apron’s stock has been crushed since it started trading in June — down 38% through Wednesday’s close — amid concern that Amazon’s entry into meal delivery would crimp its market share. Also, its financial statements suggested that it was spending much more to gain each new customer than it was able to quickly earn back.
Blue Apron’s average revenue per customer fell year-on-year to $251 from $264. Its customer base increased by 23% from the same quarter a year ago but fell from the first quarter after the planned reduction in marketing spending.Markets Insider
SEE ALSO:Blue Apron is spending more than $400 for every new customer — and that’s creating a major problem for the company
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